Biz Flash Cards

Question 1

A Social Audit

Answer 1

is a systematic evaluation of an organization’s progress toward implementing socially responsible & responsive programs

Question 1

“Greenwashing”

Answer 1

The use of deceptive marketing + advertising that portray the business as environmentally responsible

Question 1

4 Degrees of Free Market Competition (PMOM)

Answer 1

1. Perfect Competition 2. Monopolistic Competition 3. Oligopoly 4. Monopoly

Question 2

Benefitts of Socialism Are:

Answer 2

social equality, free education, free health care, free child care, longer vacations, fewer work hours, more employee benefits

Question 3

Compliance Based Ethics Code

Answer 3

Emphasizes preventing unlawful behavior by incrasing control & penalizing wrongdoers

Question 5

Compliance Based Ethics Code

Answer 5

Emphasizes preventing unlawful behavior by incrasing control & penalizing wrongdoers

Question 7

Corporate Social Responsibility (CSR)

Answer 7

is the concern the businesses have for the welfare of society - not just their owners. Integrity/Fairness/Respect/Commitment

Question 8

Corporate Social Initiatives

Answer 8

Includes forms of corporate philanthropy that are directly related to a company’s competencies

Question 8

Equilibrium Point (aka: Market Price)

Answer 8

Where supply & demand lines cross which then becomes the “market price”

Question 8

Demand

Answer 8

The quantity of products that people are willing to buy at different prices at a specirfic time. Lower price = more demand

Question 9

Ethics

Answer 9

Guide people’s decisions how to treat one another in an honest/responsible way

Question 10

Free Market

Answer 10

* decisions about what & how much to produce by buyers & sellers * negotiates prices for goods/services, not determined by sellers

Question 12

Initiatives

Answer 12

the power or opportunity to do something before others do it - an “introductory step”

Question 13

Laws

Answer 13

Narrower & protect us from fraud, theft & violence

Question 13

Market Price

Answer 13

is the price determined by supply & demand (aka: The Equilibrium Point)

Question 14

Monopolistic Competition

Answer 14

* very large amounts of sellers * very similar products which buyers perceive as different (ex: t-shirt slogans)

Question 15

Negatives of Socialism Are:

Answer 15

takes away business owner’s incentives, no job creation, no wealth creation, fewer inventions & less inovation, countries fall behind, loss of highly educated people (doctors/lawyerd/etc) which results in “brain drain”

Question 15

Monopoly

Answer 15

* ONE seller only * Controls total supply of products/services * Sets the Price

Question 16

Oligopoly

Answer 16

* A FEW sellers dominate the market * usually have a large investment * product difference are usually the reason for success (ex: Honda=reliable)

Question 17

Perfect Competition

Answer 17

*many sellers in a market & NONE are large enough to dictate the price * product appear to be identical * many sellers & identical products

Question 19

Philanthropy

Answer 19

goodwill to the human race and an act/gift done or made for humanitarian purposes

Question 21

Regulation Fair Disclosure (FD)

Answer 21

* requires that companies that release ANY information to share it with everyone, not just a few select people. * adopted by the SEC in the 2000’s * prevents Insider Trading

Question 23

Socialism

Answer 23

The belief that the most basic businesses (steel/coal/utilities) should be government-owned so profits can be evenly distributed to the people

Question 24

Supply

Answer 24

The quantity of products that manufacturers (or owners) are willing to sell at different prices at a specific time (hint: suppliers selling)

Question 25

What are Free Market Capitalism Rights?

Answer 25

1. The right to own property (private ownership, buy/sell/use land, buildings, machinery, inventions, pass on to kids) 2. The right to own business & keep the profits (profits are incentives) 3. Freedom of Competition (free to compete w/other businesses & individuals) 4. Freedom of Choice (choose where to work & what career you want to follow, where to live, what to buy/sell)

Question 26

What does an Ethics Officer do?

Answer 26

They are vital in enforcing the ETHICS CODE of a company/organization

Question 27

What is Brain Drain?

Answer 27

The loss of the best & brightest people to other countries

Question 28

What is Capitalism?

Answer 28

\* an economic system where all or most of the factors or production & distribution are privately owned & operated for profit (land, stores, factories, railroads) \* Capitalism is THE foundation of the US economic system \* it is FOR PROFIT \* Owners decide: what to produce, how much, what to charge, how much to pay workers, natl or intl production

Question 29

What is Chained Consumer Price Index (C-CPI)?

Answer 29

consumers shift purchases as prices to up or down (ex: when beef gets expensive, people switch to chicken)

Question 30

What is Core Inflation?

Answer 30

It's the Consumer Price Index minus Food & Energy Costs

Question 31

What is Macroeconomics?

Answer 31

operation of a nation's economy as a whole (United States)

Question 32

What is Social Justice?

Answer 32

some think businesses have an influential & important role in promoting "social justice" which includes: \* charity is not enough \* businesses need to give more & clean up environment \* provide computer lessons \* care for elderly \* support low-income families

Question 33

What is The Green Movement?

Answer 33

has had a positive impact on the US Labor Force by creating jobs in new industries: solar/wind/biodiesel/ethanol/etc